Asian markets ended February 16, 2026, with mixed results as investors navigated a fragmented trading environment shaped by widespread Lunar New Year holidays. Gains in India and Hong Kong contrasted with softer performance in Japan, while mainland Chinese and several regional exchanges remained closed, limiting liquidity and cross-border participation.

With multiple major markets offline, trading volumes across Asia were lighter than usual, contributing to moderate and selective price movements rather than broad-based directional momentum.

India and Hong Kong Lead Regional Gains

India’s S&P BSE Sensex climbed 0.79% to 83,277.96, marking one of the strongest performances in the region. The advance was supported by buying in financial and industrial stocks, suggesting renewed domestic confidence following recent volatility. India continues to demonstrate relative resilience compared with other regional markets.

Hong Kong’s Hang Seng Index rose 0.52% to 26,705.94, recovering modestly after last week’s pullback. Gains were seen in select technology and financial names. However, participation remained measured, reflecting the absence of mainland flows due to holiday closures.

Australia’s S&P/ASX 200 added 0.22% to 8,937.10, supported by commodity-linked shares. Currency markets were relatively stable, with the Australian dollar slightly weaker, indicating balanced capital flows rather than aggressive repositioning.

Japan Edges Lower in Thin Trading

Japan’s Nikkei 225 slipped 0.24% to 56,806.41, continuing its recent consolidation phase. Currency stability in the yen limited pressure on exporters, though overall sentiment remained cautious amid reduced regional liquidity.

Mainland China and Regional Exchanges Closed

China’s mainland exchanges, including the Shanghai Stock Exchange and Shenzhen Stock Exchange, remained closed for Chinese New Year celebrations.

Additional closures included:

• Korea Exchange

• Taiwan Stock Exchange

• Indonesia Stock Exchange

• Ho Chi Minh City Stock Exchange

• Hanoi Stock Exchange

The widespread Lunar New Year shutdown significantly reduced regional liquidity, limiting cross-border arbitrage flows and muting volatility across open markets.

Outlook

The February 16 session reflected a holiday-distorted trading environment rather than a decisive regional shift. Strength in India and Hong Kong demonstrated selective resilience, while Japan showed mild consolidation amid thinner volumes.

As mainland Chinese and other regional markets reopen later this week, investors will closely monitor whether liquidity returns with stronger conviction. A rebound in participation could support broader gains, but sustained caution in major benchmarks may extend the consolidation phase.

With global macro risks and currency stability still in focus, Asia’s next directional move will likely depend on whether post-holiday flows reintroduce momentum across the region or reinforce the current divergence.